ID :
44029
Tue, 02/03/2009 - 22:21
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https://oananews.org//node/44029
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Cabinet approves Bt270 billion in loans for state enterprises, infrastructure
BANGKOK, Feb 3 (TNA) - The Thai Cabinet on Tuesday gave the green light to borrow Bt270 billion to help cash-strapped state enterprises and finance government-sponsored basic infrastructure projects in an attempt to bolster the country's sluggish economy.
Finance Minister Korn Chatikavanij told journalists that the planned borrowings included a Bt200 billion short-term loan fund to be requested from domestic commercial banks and state financial institutions.
The Ministry of Finance will offer either partial or full guarantees of both principal and interest, Mr. Korn said.
He said the Cabinet also approved a finance ministry request to borrow Bt70 billion to help finance further economic stimulus programmes to speed growth in 2009.
The loans will be requested from the World Bank, Asian Development Bank and the Japan International Cooperation Agency (JICA).
Part of the Bt70 billion baht loans will be given to exporters, players of small and medium-sized enterprises, and property sector.
In defending the government plan to borrow Bt200 billion short-term loan, Mr. Korn said public debt would not increase because the loan would be used for refinancing debts incurred by state-enterprises and it is better to seek the borrowings from commercial banks operating in Thailand and from government-run financial institutions as it is an urgent matter, while it is also volatile to ask for loans from abroad.
Pongpanu Savetarun, director-general of the Public Debt Management Office, said Thailand's public debt now stands at about Bt3.4 trillion, or equivalent to 37 per cent of gross domestic product (GDP).
Public debt at the end of the current fiscal 2009, which ends on September 30, 2009, is estimated to rise to Bt3.9 trillion following the planned borrowing which is still lower than 41 per cent of Gross Domestic Product (GDP), said Mr. Pongpanu. (TNA)
Finance Minister Korn Chatikavanij told journalists that the planned borrowings included a Bt200 billion short-term loan fund to be requested from domestic commercial banks and state financial institutions.
The Ministry of Finance will offer either partial or full guarantees of both principal and interest, Mr. Korn said.
He said the Cabinet also approved a finance ministry request to borrow Bt70 billion to help finance further economic stimulus programmes to speed growth in 2009.
The loans will be requested from the World Bank, Asian Development Bank and the Japan International Cooperation Agency (JICA).
Part of the Bt70 billion baht loans will be given to exporters, players of small and medium-sized enterprises, and property sector.
In defending the government plan to borrow Bt200 billion short-term loan, Mr. Korn said public debt would not increase because the loan would be used for refinancing debts incurred by state-enterprises and it is better to seek the borrowings from commercial banks operating in Thailand and from government-run financial institutions as it is an urgent matter, while it is also volatile to ask for loans from abroad.
Pongpanu Savetarun, director-general of the Public Debt Management Office, said Thailand's public debt now stands at about Bt3.4 trillion, or equivalent to 37 per cent of gross domestic product (GDP).
Public debt at the end of the current fiscal 2009, which ends on September 30, 2009, is estimated to rise to Bt3.9 trillion following the planned borrowing which is still lower than 41 per cent of Gross Domestic Product (GDP), said Mr. Pongpanu. (TNA)
